DEF: Ameriprise Financial Reports Record 2025 Performance

Ameriprise Financial Inc. announces record financial results for 2025, driven by strong growth across diversified businesses and significant capital return to shareholders, ahead of its April 29, 2026 Annual Meeting.

Summary

• Ameriprise Financial delivered record financial performance in 2025, marking its 20th anniversary as an independent public company.
• Net Revenues (as adjusted) increased 6% to $18.2 billion, and Earnings (as adjusted) rose 7% to $3.9 billion.
• Adjusted Margin improved by 40 basis points to 26.9%, while Adjusted Earnings Per Diluted Share grew 12% to $39.34.
• Adjusted Return on Equity Excluding AOCI increased 60 basis points to 53.3%.
• Assets Under Management, Administration and Advisement (AUA) grew 11% to $1.7 trillion.
• The company returned $3.4 billion in capital to shareholders, a 20% increase, and raised its quarterly dividend by 8%, marking the 21st increase since 2005.
• The Board of Directors recommends voting FOR the election of eight director nominees, ratification of PricewaterhouseCoopers LLP as the independent auditor for 2026, and approval of named executive officer compensation.
• W. Edward Walter III is not standing for re-election, reducing the board size to eight directors.
• Executive compensation is performance-based, with a majority delivered in long-term incentives, and received 89% shareholder support in the 2025 say on pay vote.
• The CEO's long-term incentive award target range increased from $14-$19 million to $17-$24 million, allocated entirely to performance-based equity compensation.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as highly positive, reflecting exceptional financial performance across key metrics, robust capital management, and strong shareholder alignment, despite a slight pressure on TSR in 2025.

Positives

• Achieved record financial performance in 2025, demonstrating overall business strength and effective capital management.
• Net Revenues (as adjusted) increased 6% to $18.2 billion.
• Earnings (as adjusted) increased 7% to $3.9 billion.
• Margin (as adjusted) increased 40 bps to 26.9%.
• Earnings Per Diluted Share (as adjusted) increased 12% to $39.34.
• Return on Equity Excluding AOCI (as adjusted) increased 60 bps to 53.3%.
• Assets Under Management, Administration and Advisement (AUA) grew 11% to $1.7 trillion.
• Capital Returned to Shareholders increased 20% to $3.4 billion.
• Quarterly dividend grew 8%, marking the 21st increase since 2005.
• Maintained strong balance sheet strength, effective risk management, expense discipline, and enhanced operational efficiency.
• Advice & Wealth Management client assets increased 13% to nearly $1.2 trillion, with total client flows exceeding $31 billion.
• Achieved record advisor productivity of $1.1 million per advisor, an 8% increase.
• Ameriprise Bank, FSB, assets grew 7% year-over-year, exceeding $25 billion.
• Sustained high client satisfaction of 4.9/5 and received J.D. Power certification for outstanding customer service.
• Global Asset Management segment earnings increased 10% and maintained strong margins.
• Produced strong, consistent investment performance with 80% or more of retail funds above median for 3and 10-year periods.
• Recognized with 103 Morningstar-rated 4and 5-star funds globally.
• Ranked in the Top 15 of Barrons annual best fund family rankings for investment performance across all three time periods (1-, 5and 10-years), and #3 for best-performing firms (tax-exempt category).
• Delivered over $170 million in expense savings through operational re-engineering and increased use of intelligent automation.
• Completed move to cloud infrastructure, resulting in 99.9% system reliability.
• Maintained strong employee engagement (83% favorable) and retention (96% of high-performing employees).
• Recognized as one of the Worlds Best Companies by Forbes and TIME, a Best Place to Work on the 2025 Disability Equality Index, and a military-friendly employer for the 12th consecutive year.
• Ameriprise India received the Great Place to Work Certification for the 2nd year running.
• PSU awards granted in January 2023 (paid in February 2026) earned at 153% of target, exceeding expectations.
• CEO and other Named Executive Officers (NEOs) have exceeded stock ownership requirements.

Negatives

• Total Shareholder Return (TSR) was pressured during 2025, although the company continued to outperform financial services indices over longer-term timeframes.

Risks

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
• The company operates in an evolving global regulatory landscape, requiring continuous adaptation and maintenance of a strong risk and control environment.
• The cyber threat landscape, including evolving trends such as the use of generative AI in cyber threats, poses ongoing cybersecurity risks.
• There is a potential for imprudent risk-taking within incentive compensation programs, which the company actively mitigates through structural and governance features.
• Detrimental conduct by U.S.-based named executive officers, such as working for competitors, making disparaging statements, soliciting employees/customers, or disclosing confidential information, poses competitive and reputational risks.

Future Outlook

The company is focused on continuing to drive profitable growth by leveraging its diversified business, serving clients exceptionally well, and reinforcing its strong market reputation to generate long-term shareholder value. Strategic investments in technology, including generative AI, and expansion of product solutions globally are planned. The Board maintains flexibility to modify its leadership structure, such as separating the Chairman and CEO roles, based on future circumstances.

Management Comments

• James M. Cracchiolo (Chairman and CEO): "Ameriprise stands tall as a global financial services leader: we're focused on serving clients exceptionally well, reinforcing our strong reputation in the marketplace and generating long-term shareholder value."
• James M. Cracchiolo (Chairman and CEO): "This proxy statement provides detailed information about our business strategy and performance, corporate governance practices, shareholder engagement and executive compensation."
• Compensation and Benefits Committee: "Our executive compensation program has been developed and continues to be enhanced based on the competitive landscape across the industry as well as shareholder feedback."
• Compensation and Benefits Committee: "Shareholders owning approximately 89% of the shares voted approved our program at the 2025 Annual Meeting."
• Compensation and Benefits Committee: "Our Chairman and CEO has successfully led the Company since our spin-off 20 years ago. The average CEO tenure at S&P 500 companies is 7 years."
• Compensation and Benefits Committee: "Ameriprise has delivered the No. 1 total shareholder return in the S&P 500 Financials Index since our spin-off in 2005, through December 31, 2025."

Industry Context

StockSavvy.ai notes that Ameriprise Financial's strong 2025 performance, particularly in AUM growth and capital return, positions it favorably within the competitive financial services industry. The emphasis on diversified business segments (Advice & Wealth Management, Asset Management, Retirement & Protection Solutions) provides resilience against market fluctuations, a key trend for financial giants. The company's strategic investments in technology, including AI, and its focus on client experience and advisor productivity align with broader industry efforts to leverage digital transformation for growth and efficiency. The sustained high client satisfaction and employee engagement scores suggest a robust internal culture, which is a competitive advantage in talent acquisition and retention within the financial sector.

Comparison to Industry Standards

• Ameriprise Financial delivered the No. 1 total shareholder return in the S&P 500 Financials Index since its spin-off in 2005, through December 31, 2025, significantly outperforming the S&P 500 Financials Index (1,942% vs 247%) and the S&P 500 (1,942% vs 722%) over this long-term period.
• The company's Adjusted Return on Equity Excluding AOCI of 53.3% in 2025 is described as 'best-in-class,' ranking in approximately the top 5% of companies included in the S&P 500 Financials Index as of September 30, 2025.
• Global Asset Management produced strong, consistent investment performance, with 80% or more of retail funds above median versus peers for 3and 10-year periods, and 103 Morningstar-rated 4and 5-star funds globally.
• The company placed in the Top 15 of Barrons annual best fund family rankings for investment performance for all three time periods (1-, 5and 10-years) and ranked #3 for best-performing firms (tax-exempt category).
• The Chairman and CEO has led the company for 20 years since its spin-off, significantly exceeding the average CEO tenure of 7 years at S&P 500 companies.
• The company's total shareholder return performance for the 2023-2025 PSU period ranked 25 out of 59 firms in the S&P 500 Financials index, 8 percentage points above the median.
• A fixed $100 investment in Ameriprise on December 31, 2020, would have grown to $272 by the end of 2025, compared to $203 for an investment in the S&P 500 Financials Index over the same period.

Management Changes

Corporate Governance

Related Party Transactions

• The company engages in transactions with other firms where some directors or officers may also serve, conducted on customary terms.
• Executive officers and directors may obtain pledge or margin loans from certain subsidiaries on the same terms offered to the general public.
• Executive officers and directors may engage in transactions involving other goods and services, such as insurance, brokerage, and investment services, on terms offered to employees or the public.
• Mr. Alvero's sister is employed by the Company and earned annual compensation of $146,600 in 2025, commensurate with employees of similar responsibility levels.
• The company has ordinary-course business relationships and commercial transactions with significant shareholders, BlackRock and Vanguard and their affiliates, including marketing support, financial products and services, and investment/trading activities, negotiated at arms length with market-rate fees/commissions.

Stakeholder Impact

• Shareholders: Positive impact due to record financial performance, increased capital return ($3.4 billion, up 20%), 8% quarterly dividend growth, and strong long-term Total Shareholder Return (#1 in S&P 500 Financials Index since spin-off). Strong corporate governance practices and alignment of executive compensation with shareholder interests further enhance value.
• Employees: Positive impact through strong employee engagement (83% favorable), high retention of high-performing employees (96%), a competitive employee value proposition, and recognition as a 'Great Place to Work' (Ameriprise India) and 'Worlds Best Employers.'
• Clients: Positive impact from high client satisfaction (4.9/5), J.D. Power certification for customer service, expanded product solutions (e.g., Ameriprise Signature Wealth Program, banking solutions), and continued investment in an integrated technology platform.
• Advisors: Positive impact through record advisor productivity ($1.1 million per advisor, up 8%), strong advisor retention and satisfaction, and enhanced technology and product solutions to support their practices.
• Communities: Positive impact through the company's 'culture of caring' and recognition as a 'Best Place to Work on the 2025 Disability Equality Index' and 'military-friendly employer.'
• Creditors/Regulators: Positive impact from strong balance sheet fundamentals, effective risk management, and adaptation to an evolving global regulatory landscape, ensuring stability and compliance.

Next Steps

• Hold the Annual Meeting of Shareholders virtually on April 29, 2026, at 11:00 a.m. Central time.
• Shareholders will vote on the election of eight director nominees.
• Shareholders will vote on the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2026.
• Shareholders will participate in a nonbinding advisory vote to approve the compensation of the named executive officers.
• The Nominating and Governance Committee will continue its year-round process to identify and evaluate new director candidates.
• Management and the Board will continue regular discussions on the company's performance and progress on the Long-Range Plan.
• Joseph E. Sweeney will retire from the Company on April 3, 2026.

Key Dates

Recommendation

Ameriprise Financial's 2025 results demonstrate exceptional operational execution, delivering record net revenues, earnings, and EPS, coupled with a best-in-class ROE of 53.3%. The significant capital return to shareholders ($3.4 billion, up 20%) and consistent dividend growth underscore a robust financial position and commitment to shareholder value. The company's long-term outperformance in TSR against the S&P 500 Financials Index, combined with strategic investments in technology and a strong client-focused culture, indicates sustainable competitive advantages. These factors collectively present a compelling "Strong Buy" recommendation for investors seeking a well-managed, high-performing financial services leader.

Keywords

Financial Services, Wealth Management, Asset Management, Retirement Solutions, Insurance, Proxy Statement, Executive Compensation, Corporate Governance, Shareholder Meeting, Financial Performance, Dividend, Capital Return, Risk Management, Cybersecurity